2004 Hong Kong Fifth Freedom All-Cargo Frequency Proceeding

Order 04-3-3
OST-02-14049
OST-04-17279

Issued and Served: March 9, 2004

Order Instituting Proceeding | Word

We have decided to institute the 2004 Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding to select carriers to operate the available frequencies for weekly Hong Kong fifth-freedom service.  As noted above 16 frequencies become available for U.S.-carrier fifth-freedom services on October 26, 2004.  In addition, on February 20, 2004, Evergreen returned the two frequencies awarded to it by the Department in Order 2003-9-9.  We have decided that the public interest would best be served by including long-term consideration for these two returned frequencies in the proceeding we are instituting in this order.  Thus, in this proceeding, there will be 18 frequencies available for allocation on a long-term basis.

• Petitions for Reconsideration:    March 16, 2004
• Applications:   March 23, 2004
• Direct Exhibits:  April 13, 2004
• Rebuttal Exhibits:   April 27, 2004
• Briefs:   May 11, 2004

As to the interim period pending completion of this proceeding, we have decided to allocate the two available frequencies to Polar and Northwest.  We find that those two carriers’ operations most closely correspond to the type of cargo service—i.e., general all-cargo services—that Evergreen would have provided. We believe that this result will best serve the public interest. This interim allocation of the two frequencies will permit Polar and Northwest to operate nine and five Hong Kong fifth-freedom frequencies, respectively.  FedEx and UPS will each retain the 18 and 12 Hong Kong fifth-freedom frequencies, respectively, previously awarded to them.  We emphasize that our determination in the previous proceeding that Seoul-Hong Kong frequencies would be awarded to general all-cargo carriers is subject to reexamination in the new proceeding based upon the record that is developed in that docket.

By: Karan Bhatia